SA ministers slam nationalisation

2011-08-07 07:54

Johannesburg - Calls to nationalise South Africa's mines, driven by the ruling party's youth league, face new challenges from ministers who warn the scheme won't fight poverty and fear the debate is scaring investors.

Worries about nationalisation have dogged South Africa ever since the African National Congress took power in 1994, when Nelson Mandela led the party to victory in the first all-race elections.

Now the debate has been revived by Julius Malema, the firebrand ANC youth league leader, who wants to redress South Africa's gaping economic divide by nationalising mines and banks while accelerating land reforms to resettle blacks on white-owned farms.

"Everyone has the right to benefit from wealth in South Africa," Malema said in a speech at the University of Johannesburg on Thursday.

"South Africa is divided as we speak. We've got two economies in one country, two nations in one country, and it is nationalisation that will unite us."

Formal study

Malema is campaigning for a constitutional amendment to allow the government to seize mines, banks and farms without compensation to owners, who he says never paid Africans for the original purchase of the properties.

Malema has beaten the nationalisation drum for two years, forcing the ANC to launch a formal study into the issue that should be released in a few months, ahead of the party congress in December 2012.

President Jacob Zuma has remained conspicuously silent during most of the debate about the mines, which employ one million people and account for almost 20% of the economy.

Other top officials are now weighing in, even though current policy has no chance of changing until the ANC review is released and debated by the party.

"We don't develop a policy on our feet, and we don't just wake up and adopt policies because a group is vocal on the nationalisation of mines. It does not work that way," ANC secretary general Gwede Mantashe told the youth league's congress in June.

Malema wants Mantashe replaced

Mantashe and Malema regularly spar over policy and the direction of the party, with Malema making little secret of his desire to see Mantashe replaced.

But other ministers have now begun speaking out.

"We who run the country know the harm this reckless debate is doing to the good image and investments of the country," said public works minister Malusi Gigaba, a former youth league leader.

Mines minister Susan Shabangu said on Tuesday that nationalisation would not rid South Africa of its "evil triplets" - poverty, unemployment and inequality.

"The correct question should not be whether or not we nationalise. The question, in my view, should be: How do we make use of our vast mineral wealth to eliminate the evil triplets?" she said.

Not enough jobs

The South African Institute for Race Relations predicts that half of black South Africans aged 15 to 34 will never work in the formal economy because they aren't literate enough and because economic growth is too slow to generate enough jobs.

These are the people that Malema's proposals speak to, but business leaders warn that nationalisation won't address their concerns.

"Nationalisation is not going to solve the problem, but will end up killing the patient," said Roger Baxter, an economist at the Chamber of Mines.

"In fact it will actually set South Africa back hugely in its efforts to try and solve the problem."

- SAPA
Read more on:    anc  |  ancyl  |  jacob zuma  |  malusi gigaba  |  susan shabangu  |  nelson mandela  |  julius malema  |  gwede mantashe  |  nationalisation
NEXT ON NEWS24X

Zuma must share Nkandla

42 minutes ago
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
140 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/Sport
 

BMW drift battle: M235i vs. speedway bike

Watch this insane drift contest with four-times dirt-track World champion Karl Maier riding a speedway bike against a BMW M235i.

 
 

Men24.com

Want to start talking dirty?
Everyday struggles of naturally skinny guys
And this year's Miss Bumbum title goes to...
How to maintain your mo, bro

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

20% off ALL TV Series

Choose from 1000’s of the hottest TV Series . While stocks last. Shop now!

Festive gifts!

Check out our awesome range of festive gifts to make everyone’s wishes come true. Shop now!

Seen something you like in our catalogue?

Find the perfect gift and save up to R5000 – As seen on the catalogue. Hurry and shop now!

Save up to R2200 on electronics! – As seen in the catalogue

Wishing for tech gadgets this festive? Save up to R2100 on hot tech products at kalahari.com. While stocks last. Shop now!

Up to 35% off books

Save up to 35% on the latest page-turners. While stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

There is a strong focus on social interaction and connecting with your friends. You may have the need to expand and connect with a...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.